Finding the best return on cash deposits has become increasingly difficult as interest rates remain at historic lows. Investors seeking the relative security and simplicity of cash are finding that their cash deposits don’t provide the return they once did, with many looking for better ways to invest their cash.
In addition, advisers who scrutinise the interest rates provided by investment platforms often feel short-changed, with those rates often significantly below the already low RBA cash rate.
While term deposits have traditionally been a way for investors to benefit from better interest rates compared to ‘at call’ bank accounts, they usually mean locking cash away for a period of time. Depending on the term, this can be anywhere from 1 month to 5 years, and accessing your cash before the end of the term can be costly.
Cash ETFs may provide a more attractive option. The BetaShares Australian High Interest Cash ETF (ASX: AAA) holds only cash deposits, yet offers both attractive interest rates and the liquidity of an exchange-traded investment.
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AAA offers a competitive solutionThe BetaShares Australian High Interest Cash ETF (ASX: AAA) offers the benefits of an investment that is accessible daily (subject to the normal ASX settlement cycle), and regular income from attractive interest rates, paid monthly. The ETF can be bought or sold on the ASX just like any share so there is no need to open a bank account or lock your money away for extended periods of time. |
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By leaving cash on the platform you’re leaving cash on the tableAAA has become the cash management solution for thousands of Australian investors and their advisers. |
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Simple access to cash returnsAAA is structured simply. The ETF holds Australian dollars in bank accounts with several major banks in Australia and pays attractive monthly income distributions. |
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Capital stabilityCash is capital stable. Unlike fixed interest bonds and bond funds invested in fixed interest bonds, the capital value of a cash investment will not vary, regardless of changes in the interest rate environment. |
*As at 22 November 2019. Rate earned on AAA’s bank account deposits, after management costs. Rate is variable. Average of rate for working cash accounts offered by the five largest investment platforms in Australia, subject to change. Past interest rates are not indicative of future rates. Source: Publicly available data or providers.
BetaShares Capital Limited (ACN 139 566 868 / AFS Licence 341181) (“BetaShares”) is the issuer of this information. This information is general only, not personal financial advice, and is not a recommendation to invest in any financial product or to adopt any particular investment strategy. It does not take into account any person’s financial objectives, situation or needs. Investments in BetaShares Funds are subject to investment risk and the value of units may go down as well as up. Any person wishing to invest should obtain a copy of the relevant PDS from www.betashares.com.au and obtain financial advice in light of their individual circumstance.